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Domestic fuel prices expected to rise on crude oil rebound

Domestic fuel prices expected to rise on crude oil rebound

Taipei, Feb. 13 (CNA) Domestic fuel prices are likely to go up next week as international crude oil prices are rebounding, market sources said Friday. Based on a floating pricing mechanism used by state-owned oil supplier CPC Corp., domestic fuel prices are expected to rise by between NT$0.4 (US$0.01) and NT$0.5 next week. It will be the second price hike by CPC since Feb. 9 when it increased fuel prices by NT$1.9-NT$2.0 in the wake of a hike in crude oil prices on the world market. CPC adjusts domestic fuel prices every week based on the weighted index under a floating pricing mechanism that comprises 70 percent Dubai crude and 30 percent Brent crude. As of Feb. 12, the weighted index showed that the price of oil was US$55.04 per barrel, up from US$53.24 the previous week. Oil prices in New York and London spiked by more than US$2 per barrel overnight as an increasing number of explorers decided to cut back on work because of the recent steep drop in oil prices. Since June 2014, international crude oil prices had fallen about 50 percent on a global supply glut and growing oil reserves in the United States. With a new domestic fuel price hike, prices at the pump ae likely to rise to NT$22.4 per liter for super diesel, NT$24.4 per liter for 92 octane unleaded gasoline, NT$25.9 per liter for 95 octane unleaded gasoline and NT$27.9 per liter for 98 octane unleaded gasoline. CPC is scheduled to announce the new fuel prices Sunday at noon, as usual. (By Lin Meng-ju and Frances Huang)


Updated : 2021-09-21 09:24 GMT+08:00